Page:United States Statutes at Large Volume 117.djvu/2800

 PUBLIC LAW 108–188—DEC. 17, 2003

117 STAT. 2781

of the United States on income which is also taxed by the Government of the Federated States of Micronesia shall be relieved of liability to the Government of the United States for the tax which, but for this subsection, would otherwise be imposed by the Government of the United States on such income. However, the relief from liability to the United States Government referred to in the preceding sentence means only relief in the form of the foreign tax credit (or deduction in lieu thereof) available with respect to the income taxes of a possession of the United States, and relief in the form of the exclusion under section 911 of the Internal Revenue Code of 1986. For purposes of this section, the term ‘‘resident of the Federated States of Micronesia’’ shall be deemed to include any person who was physically present in the Federated States of Micronesia for a period of 183 or more days during any taxable year. (b) If the Government of the Federated States of Micronesia subjects income to taxation substantially similar to that imposed by the Trust Territory Code in effect on January 1, 1980, such Government shall be deemed to have exercised the authority described in section 254(a). Section 255 For purposes of section 274(h)(3)(A) of the United States Internal Revenue Code of 1986, the term ‘‘North American Area’’ shall include the Federated States of Micronesia. TITLE THREE SECURITY AND DEFENSE RELATIONS Article I Authority and Responsibility Section 311 (a) The Government of the United States has full authority and responsibility for security and defense matters in or relating to the Federated States of Micronesia. (b) This authority and responsibility includes: (1) the obligation to defend the Federated States of Micronesia and its people from attack or threats thereof as the United States and its citizens are defended; (2) the option to foreclose access to or use of the Federated States of Micronesia by military personnel or for the military purposes of any third country; and (3) the option to establish and use military areas and facilities in the Federated States of Micronesia, subject to the terms of the separate agreements referred to in sections 321 and 323. (c) The Government of the United States confirms that it shall act in accordance with the principles of international law and the Charter of the United Nations in the exercise of this authority and responsibility. Section 312 Subject to the terms of any agreements negotiated in accordance with sections 321 and 323, the Government of the United States may conduct within the lands, waters and airspace of the Federated States of Micronesia the activities and operations necessary for the exercise of its authority and responsibility under this Title.

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